China's data center industry is entering a new phase of expansion driven by AI and national infrastructure policy. According to the National Development and Reform Commission (NDRC), China plans to invest around 2 trillion yuan (USD 295 billion) between 2026 and 2030 to build a nationwide AI computing network. Installed data center capacity reached roughly 40 GW in 2026, up from 32 GW at the end of 2025, making China one of the world's largest and fastest-growing digital infrastructure markets.

The largest data center projects in China include ByteDance's AIDC expansion across northern China, Alibaba Cloud's Super Data Center Expansion, Jinko Power's 1 GW Zhongwei Green Data Center in Ningxia, China Telecom's 290 MW Lin-gang International Data Center Phase 2 in Shanghai, and the NDRC's National AI Data Center Network that will connect computing hubs across the country. Together, these projects span hyperscale cloud, AI training, and sovereign computing infrastructure.

This article breaks down each of these five projects, covering their developers, investments, capacities, construction status, and strategic importance.

List of Top 5 Data Center Projects in China 2026

ByteDance AI Data Center Campus (Datong)

ByteDance is developing one of China's largest upcoming AI-focused data center projects through its Volcano Cloud Taihang Computing Center expansion in Datong, Shanxi Province. The project supports growing demand for large language models, recommendation engines, and cloud services across its ecosystem, including Doubao, China's leading generative AI assistant.

The development is being built by Volcano Cloud, ByteDance's cloud computing division, within the Guangling County Economic Development Zone Big Data Park. Approved in early 2025, the project carries a total investment of approximately 4.5 billion yuan (USD 614 million) and forms part of ByteDance's broader strategy to expand AI computing capacity across northern China. 

The facility complements the company's existing infrastructure footprint in Shanxi and neighboring Inner Mongolia, where major hyperscale operators are increasingly concentrating large-scale computing resources.

Capacity and Infrastructure Details

The Datong campus is designed as a large-scale AI computing and cloud infrastructure hub capable of supporting advanced model training and inference workloads. The development spans more than 205,000 square meters and includes multiple purpose-built data center buildings optimized for high-density computing deployments.

Alibaba Cloud & China Telecom Shaoguan AI Computing Center

Alibaba Cloud and China Telecom have launched a major AI computing center in Shaoguan, Guangdong Province, designed to strengthen China's domestic AI infrastructure capabilities. The facility is notable for relying entirely on locally developed Zhenwu AI chips rather than imported GPUs, reflecting China's broader effort to build sovereign AI computing capacity.

China Telecom owns and operates the facility, while Alibaba Cloud provides cloud and AI services. The center supports large-scale AI training and inference workloads and already serves industries such as healthcare and manufacturing. Businesses can access computing resources through China Telecom's platform on a pay-per-use basis.

Capacity and Infrastructure Details

The facility features a 10,000-card AI cluster connected through an ultra-low-latency network architecture that allows the chips to function as a unified system. According to project partners, this design improves training and inference efficiency by approximately 30%.

The Shaoguan project is part of China's growing investment in domestic AI infrastructure and aligns with national efforts to expand computing capacity using homegrown technologies. Plans are already in place to scale the deployment to 100,000 chips, significantly increasing the region's AI computing resources in the coming years.

Jinko Power AI Data Center (Zhongwei)

Jinko Power, the utility-scale renewable energy subsidiary of Jinko Solar, is entering the data center sector with a massive 1 GW AI data center project in Zhongwei, Ningxia. The development is one of the largest planned data center projects in China and is designed to combine hyperscale computing infrastructure with renewable energy generation.

The project aligns with China's national "Eastern Data, Western Computing" strategy, which encourages the relocation of large-scale computing workloads from densely populated eastern provinces to western regions that offer abundant renewable energy resources, lower land costs, and favorable data center cooling conditions. 

Located in the Zhongwei Data Center Cluster, the facility will be powered by renewable energy and is expected to support growing demand for AI training, cloud computing, and high-performance computing workloads.

Capacity and Infrastructure Details

The Zhongwei campus is planned to deliver 1 GW of total IT load, placing it among the largest upcoming data center developments in Asia. The project will be built across three phases and accommodate approximately 50,000 server racks upon full completion.

Jinko Power will oversee the construction and long-term operation of the facility, generating revenue primarily through data hall and rack leasing services. The development leverages Zhongwei's growing status as one of China's key western computing hubs and aims to capitalize on the region's abundant renewable energy resources to support energy-intensive AI and cloud workloads.

China Telecom Lin-gang Information Park Phase II

China Telecom is expanding its digital infrastructure footprint through the second phase of its Lin-gang Information Park in Shanghai's Lin-gang Special Area. Construction of the data center officially began in December 2025, with the project positioned as a major cloud, AI, and big data hub supporting China's growing digital economy.

Designed as a next-generation digital infrastructure campus, the facility will integrate China Telecom's Tianyi Cloud core nodes, a national big data center, and an international communications gateway. The project also benefits from Lin-gang's cross-border data flow pilot policies, which aim to attract cloud computing, AI, and international data service providers.

Capacity and Infrastructure Details

The Lin-gang campus is designed to provide large-scale computing resources for AI model training, cloud services, and enterprise digital transformation. The project incorporates carbon-neutral design principles, including renewable energy integration and intelligent energy management systems.

Once operational, the facility will strengthen Shanghai's position as one of China's leading digital infrastructure hubs while supporting both domestic and international cloud services. The project is being developed in phases and is expected to play a key role in advancing China's broader digital economy and AI development strategies.

China National AI Data Center Network

China is preparing one of the largest AI infrastructure programs ever announced, with plans to invest approximately 2 trillion yuan (USD 295 billion) over five years to build a nationwide network of AI data centers. The initiative forms a core part of China's latest Five-Year Plan and aims to dramatically expand the country's sovereign computing capacity while reducing reliance on foreign technology suppliers.

The program will be led by state-backed entities, with major telecom operators including China Mobile and China Telecom expected to develop and operate many of the facilities. A key requirement of the initiative is that at least 80% of technology components, including AI processors and supporting infrastructure, must come from domestic suppliers such as Huawei.

Capacity and Infrastructure Details

The initiative will establish a nationwide network of interconnected AI data centers designed to support China's growing demand for large-scale AI training and inference workloads. State-owned telecom carriers will play a central role in operating the facilities and ensuring high-capacity connectivity between regional computing hubs.

The program builds on China's broader "Eastern Data, Western Computing" strategy and is expected to accelerate deployment of domestic AI hardware at unprecedented scale. While specific capacity figures have not been disclosed, the investment level makes it one of the largest digital infrastructure programs currently planned anywhere in the world.

Government Policies Supporting China's Data Center Market

Beijing has made AI infrastructure, sovereign computing capacity, and energy-efficient data centers strategic priorities. Several government programs and regulatory frameworks are shaping where and how new facilities are being built.

15th Five-Year Plan (2026–2030)

Approved by the National People's Congress in March 2026, the 15th Five-Year Plan places AI computing and digital infrastructure at the center of China's economic strategy for the next five years. The plan targets digital economy value-added equivalent to 12.5% of GDP by 2030 and reflects Beijing's shift from semiconductor production targets toward broader computing infrastructure deployment. 

It is also the first five-year plan developed in the era of large language models and increasing technology restrictions from the United States, making domestic computing capacity a national priority.

NDRC National AI Data Center Plan

China's National Development and Reform Commission (NDRC) is preparing a CNY 2 trillion (about USD 295 billion) AI data center blueprint covering 2026-2030. The plan aims to connect computing resources across the country into a unified AI infrastructure network by 2028. 

State-owned telecom operators are expected to lead deployment, while new facilities will be required to source at least 80% of their components from domestic suppliers. The proposal remains under review but highlights China's push toward technological self-reliance.

Eastern Data Western Computing (EDWC) Initiative

The Eastern Data Western Computing initiative entered its full implementation phase in 2026. The program connects eight national computing hubs and encourages companies to move workloads from densely populated eastern regions to resource-rich western provinces such as Inner Mongolia, Ningxia, Guizhou, and Gansu. 

By shifting computing to areas with lower energy costs and greater renewable resources, China aims to improve efficiency while supporting large-scale AI growth.

Green Data Center Standards and PUE Requirements

Energy efficiency has become a key requirement for new facilities. China mandates a maximum PUE of 1.25 for large and hyperscale data centers, while projects located in national computing hubs must achieve a stricter PUE of 1.2 or lower. 

Authorities also require new hub facilities to obtain at least 80% of their electricity from renewable sources. These measures are intended to reduce power consumption and support China's carbon-reduction goals.

"Six Networks" Infrastructure Program

Introduced in 2026, the "Six Networks" program elevates computing networks to the same strategic level as transportation, power grids, water systems, logistics, and communications. 

The initiative provides a national framework for integrating AI infrastructure and supports the development of interconnected data center clusters across the country. It reflects the government's view that computing capacity is becoming a fundamental utility.

Data Localization and Cybersecurity Regulations

China's regulatory framework favors domestic operators and technology suppliers. Strict data localization requirements mean foreign cloud providers often work through local partners. 

Companies such as Amazon Web Services and Apple operate in China under arrangements that comply with domestic regulations. Government cloud workloads also require MLPS 4.0 certification, which encourages the use of Chinese hardware and software ecosystems.

Domestic AI Chip Strategy

China is accelerating the adoption of domestic AI chips to reduce dependence on foreign technologies. Huawei's Ascend processors are being deployed across major AI facilities, while domestic chip output is expected to increase sharply during 2026. 

At the same time, ByteDance, Alibaba, and Tencent have received limited approvals to import Nvidia H200 GPUs for training applications. Projects such as the Alibaba–China Telecom Shaoguan AI cluster demonstrate how China is combining domestic hardware with large-scale computing infrastructure to support its AI ambitions.

Major Data Center Companies in the Chinese Market

Here are the largest data center companies in China and their major announcements:

China Mobile, China Telecom, and China Unicom

• China's three state-owned telecom operators form the backbone of the country's AI and cloud infrastructure.

• Collectively operate more than 1.5 GW of colocation capacity.

• Leading the national AI data center network under the NDRC's strategy.

• China Telecom plans to allocate about 35% of its 2026 CAPEX (CNY 73 billion) to AI data center infrastructure.

• China Mobile opened its 6.7 EFLOPS intelligent computing center in Hohhot and is expanding with additional facilities in Harbin and Guiyang.

Alibaba Cloud

• Announced a three-year AI and cloud infrastructure investment program worth CNY 380 billion (about USD 52 billion), which could reportedly rise to USD 69 billion.

• Expanding major cloud campuses across Hangzhou, Nantong, Heyuan, Ulanqab, and Shaoguan.

• Developed the Zhenwu 810E AI chip as part of its domestic semiconductor strategy.

• Supplied over 23,000 Chinese-made GPUs to China Unicom's Xining data center.

ByteDance / Volcano Cloud

• One of the fastest-growing AI infrastructure investors in China.

• Targeting more than 1.2 GW of AI data center capacity in 2026.

• Developing large campuses in Shanxi and Inner Mongolia.

• The Datong Volcano Cloud Taihang Computing Centre II project represents a CNY 4.5 billion (USD 614 million) investment.

Tencent Cloud

• Plans to double AI investment in 2026 to around CNY 36 billion.

• Upgrading data centers with liquid cooling systems capable of supporting racks exceeding 50 kW.

• Expanding GPU capacity across its cloud and AI infrastructure network.

• Building large AI computing clusters in Shanghai and other Yangtze River Delta locations.

Huawei Technologies

• Emerging as China's leading domestic AI infrastructure supplier.

• Offers CloudMatrix 384 architecture, delivering 300 petaflops in a single supernode.

• Provides modular liquid-cooled data center solutions for high-density AI workloads.

• Expanding its role through the Ascend AI ecosystem and domestic computing platforms.

GDS Holdings (DayOne)

• One of China's largest carrier-neutral data center operators.

• Raised USD 300 million in 2025 to fund high-performance AI facilities.

• Expanding campuses in Tianjin and Shaoguan.

• Pioneer behind China's first data center C-REIT structure.

VNET Group (21Vianet)

• Operates nearly 783 MW of wholesale data center capacity.

• Focused on hyperscale and AI customers.

• Continues to expand across major cloud and edge markets in China.

ChinData Group

• Acquired by Bain Capital and operates the Taihang Mountain Base in Shanxi.

• The campus is planned to exceed 500 MW, making it one of Asia's largest single data center parks.

• Expanding computing hubs across Inner Mongolia and central China.

Jinko Power

• Entered the data center sector in 2026.

• Developing a 1 GW green data center campus in Zhongwei, Ningxia.

• Combining renewable energy generation with AI infrastructure under China's "Eastern Data, Western Computing" strategy.

• Investing approximately CNY 24.5 billion (USD 3.4 billion).

HiCloud Technology

• Operates the world's first commercial offshore underwater data center near Shanghai.

• The 24 MW facility runs entirely on offshore wind power and achieves a PUE below 1.15.

• Planning a next-generation 500 MW underwater data center platform.

• Represents one of China's most innovative approaches to sustainable computing infrastructure.

Major Upcoming Data Center Projects in China 2026

Conclusion

China's data center expansion in 2026 reflects more than rising demand for cloud and AI services. It represents a long-term national strategy that combines state planning with massive private investment. The country is rapidly adding AI computing capacity, building new regional hubs, and strengthening its domestic technology ecosystem.

Challenges remain, including rising power demand, export controls, and the need to scale domestic chip production. Yet the direction is clear. China is investing heavily in sovereign computing capacity and positioning itself as one of the world's most important AI infrastructure markets. For hyperscalers, investors, and digital infrastructure providers, the country's data center sector will remain one of the most closely watched markets through the rest of the decade.

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